0% found this document useful (0 votes)
3 views

Business Management

The consultancy report discusses the urgent need for INEOS, a major player in the European chemical industry, to adopt sustainable practices to mitigate its environmental impact and align with regulatory standards. It outlines various alternative waste management strategies, including waste prevention, minimization, recycling, biological treatment, incineration, and landfill disposal, emphasizing the importance of reducing greenhouse gas emissions. The report concludes with recommendations for INEOS to invest in environmentally friendly waste disposal methods and develop a sustainable business model to enhance its market position.

Uploaded by

moriola
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
3 views

Business Management

The consultancy report discusses the urgent need for INEOS, a major player in the European chemical industry, to adopt sustainable practices to mitigate its environmental impact and align with regulatory standards. It outlines various alternative waste management strategies, including waste prevention, minimization, recycling, biological treatment, incineration, and landfill disposal, emphasizing the importance of reducing greenhouse gas emissions. The report concludes with recommendations for INEOS to invest in environmentally friendly waste disposal methods and develop a sustainable business model to enhance its market position.

Uploaded by

moriola
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 14

1

Consultancy report:
2

Table of Contents

Introduction.....................................................................................................3

Background......................................................................................................3

Areas of Concern.............................................................................................5

Alternative practices........................................................................................6

Waste Prevention..........................................................................................6

Waste Minimization.......................................................................................6

Recycling and Re-use....................................................................................7

Biological Treatment.....................................................................................8

Incineration...................................................................................................9

Landfill Disposal............................................................................................9

Recommendations and conclusion................................................................10

Recommendations......................................................................................10

Conclusion..................................................................................................10

References.....................................................................................................11
3

Introduction

The global community is heavily influenced by the field of chemistry and the
substances it produces. However, urgent measures must be implemented to
save the European chemical industry, which plays a vital role in the
economic prosperity of the European Union, from impending destruction.
INEOS is a newly established European company headquartered in Rolle,
Switzerland. The company is privately owned and headquartered in
Lyndhurst, Hampshire, United Kingdom. Based on sales volume, it is among
the top ten firms in the chemical manufacturing industry. Jim Ratcliffe, the
firm's creator, is also the chairman and owns 60% of the company's shares.
Andy Currie, John Reece, and Jim Dawson are significant individuals (Anon,
2015). The company mainly emphasizes manufacturing various chemicals,
polymers, and petrochemicals. The items are distributed throughout several
industries, including construction, food, packaging, lubricants, and fuel.
Additional markets include pharmaceuticals, the sports industry goods and
durables, textiles, and agrochemicals (Anon, 2015). The company specializes
in generating sustainable energy from waste materials and is at the forefront
of the renewable energy industry. Its primary competitors are products
imported from China, America, and the Middle East (Anon, 2014a). in terms
of sustainability demands, INEOS is dedicated to decreasing its greenhouse
gas emissions in alignment with the Paris Agreement. The firm has
implemented a comprehensive greenhouse gas management system to
achieve a net zero emissions target by 2050.

Background

Chemical enterprises have a distinct advantage if they want to achieve


sustainability. Their objective is to optimize their profits while reducing their
ecological impact by a careful equilibrium between operational growth and
the supply of industrial chemicals to enterprises (Shen et al.,2018). To align
with the latest sustainability trends in the chemical industry, it is necessary
4

to reevaluate some elements of their operations and allocate resources


towards implementing solutions that may continuously enhance
performance. These changes should be integrated into their operational
strategies.

Chemical enterprises, investors, and consumers are increasingly aware of


chemicals' impact on the environment and climate change (Horodytska et
al.,2018). Chemical plants cannot conduct their operations without fossil
fuels which is even more reason why sustainable business is essential.

These chemical plants release a lot of greenhouse gases which pollute the
air. Moreover, plants also release harmful waste into water streams which
cause may harm the animals by causing imbalance in the ecosystem.
Sustainable business is therefore the best way to ensure that businesses
operate without disrupting the surrounding environment in a negative way.

Consumers are now leaning onto products that are environmentally friendly
due to the awareness that has been promoted by environmental activists.
There are some reports that most of the companies that have proper
sustainability practices have been getting increases in sale and revenue.

Through buying power, consumers are pushing companies to adopt


sustainable business which would promote environmental conservation (Hall
and Nguyen, 2012). By creating and maintaining good reputation in
production and sustainability, companies will establish a strong image that
will be good for marketing and promotions. This will greatly be promoted by
environmental, social and governance practices.

There are very many approaches that can be adopted by chemical plants to
implement proper sustainable practices. They should be designed in a way
that it agrees with the existing regulations in the specified sector.

It is crucial to decrease the emissions of the chemical sector, which


contribute to more than two gigatons of greenhouse gases (GHG) per year
and make up 96% of all manufactured goods, to establish a sustainable
5

global economy (Rerat et al.,2013). The Deloitte report titled "Reducing


carbon, fueling growth: Lowering emissions in the chemical industry"
suggests that chemical companies can achieve sustainable growth by
implementing four strategies: reducing Scope 1 and 2 emissions, adapting to
new market demands, developing sustainable product portfolios, and
promoting circular ecosystems (Smith and Blowers, 2021). Without efficient
methods to reduce its emissions, the industry's natural expansion might lead
to a twofold increase in greenhouse gas (GHG) emissions within three
decades.

Chemical enterprises comprehend the economic advantages of


implementing sustainable practices. An organization's ability to attract highly
skilled employees and get new clients is strengthened by its reputation for
sustainability (Yıldız, 2020).

In addition to complying with legal and industry regulations, factories must


also strive to decrease waste since it reduces expenses and boosts profit
margins. Moreover, plants face the possibility of incurring fines and
undergoing expensive audits.

Golly of PWC states that companies that actively engage in discussions about
sustainability and the chemicals industry and develop solutions for these
challenges have a distinct advantage (Yıldız, 2020). Instead of simply
reacting to changes to protect their operating ability, they can actively
exploit growth opportunities.

Areas of Concern

Just like any other chemical plant today INEOS is facing major challenges in
aligning its operations with sustainable practice regulation set by UK
government. Chemical plants often release a lot of waste materials that are
not environmentally friendly. This usually makes it very difficult to do
production in large number.
6

INEOS is dependent on fossil fuels which has made it completely dependent


(Geels, 2022). This has brought about a void in resources that makes it very
expensive to do production in large scale. There is great need for strategic
change due to sustainable future which is the vision of most companies
today.

Emissions are the greatest threat to climate. There are reports that climate
change is becoming an issue due to emission which cause imbalance in the
atmosphere. Zero emission future is the goal and INEOS still have a long way
to go given there is so much emissions still being produced by the company
regardless of the efforts to reduce it.

INEOS has not yet established a stable product lifecycle where there is s
specific source and a recycling process (Snyder et al.,2021). It is more into
removing waste and starting over the process again. This promotes dumping
which is not environmentally friendly given they are harmful chemical waste.

When dealing with chemicals and fossil fuels it is difficult to work within the
regulations of the state given it is expensive to implement other models and
sometimes, they fail. INEOS is finding a difficult time when trying to
implement sustainable practices in its operations.

Alternative practices

In this section I will be discussing some alternative practices that INEOS can
adopt to be more sustainable using examples from other developed
countries.

Waste Prevention

The optimal strategy for waste management is to cease all production of


refuse. Hence, the primary goal of waste management systems is to prevent
the generation of garbage. A variety of methodologies may be used to
manage waste disposal at each phase of a product's life cycle, spanning from
manufacturing to utilization to disposal, with the aim of reducing or
7

eliminating pollution entirely (Heller and Flamme, 2020). Some


representative strategies encompass water-efficient innovations, innovative
chemical neutralization processes, contemporary leakage detection systems,
and environmentally conscious production procedures that minimize the use
of hazardous materials.

Waste Minimization

In many cases, waste cannot be entirely eliminated from various operations.


Still, there are a number of options for reducing garbage output. The goal of
waste minimization, often called source reduction, is to reduce the amount of
trash generated by the design and manufacturing of products and services
while simultaneously reducing the toxicity of that waste. These programs are
usually the outcome of efforts to address problems that have been linked to
specific things or patterns that are causing problems with the waste stream.
Several methods exist for reducing industrial waste, such as recycling
materials, choosing safer alternatives, and modifying design and processing
aspects. Reducing waste might have several benefits, such as reducing the
toxicity of waste products and the demand on natural resources (Heller and
Flamme, 2020).

The manufacturing industry makes extensive use of waste reduction


strategies since these methods not only reduce material consumption and
thereby safeguard resources, but they also significantly lower production-
related costs. Optimization of packaging reduces material use, while more
efficient distribution cuts down on fuel consumption and the resulting air
pollution. When included into the structural design process, engineered
building materials' unique beneficial properties may drastically reduce the
overall mass and weight of a project. This reduces component manufacturing
waste and the requirement for additional material.

In order to reduce the creation of hazardous waste, the dry-cleaning sector


has successfully substituted products. For a long time, dry cleaners relied on
tetrachloroethylene, or "perc," as their solvent of choice (Esmaeili et
8

al.,2020). Even while it works, tetrachloroethylene is a little risky. Even while


its physical properties make it very resistant, it is also easily integrated into
the environment. In addition, the degradation process releases additional
harmful intermediate daughter compounds that endanger both humans and
the environment.

Because of its toxicity and environmental impacts, the dry-cleaning industry


has adopted new methods and is increasingly adopting less harmful
alternative chemicals, such as compounds derived from petroleum. In
addition, emerging technologies are incorporating carbon dioxide and other
relatively harmless chemicals. Although these replacement goods were
frequently mandated by law, they were accepted due to market forces and
consumer demand.

Recycling and Re-use

Metals, glass, paper, plastics, and wood are just some of the valuable
elements that may be systematically extracted from waste streams and used
via recycling (Murphy, 2006). Reusing and recycling materials lessens the
need for virgin resources needed to accomplish the same tasks. Lessening
the need to deplete natural resources for raw materials, recycling allows for
the recovery of waste materials and their transformation into valuable
resources. Prompt recycling of waste materials protects natural resources,
lessens emissions and energy consumption during raw material extraction
and final product production, lowers overall energy usage and greenhouse
gas emissions that exacerbate climate change, and decreases the number of
recycled materials that end up in landfills or incinerators (Munjar, 2022).
Among recycling's several beneficial economic effects are the creation of
jobs and an increase in gross domestic product (GDP).

Materials such as wood, paper, metal, aluminum, steel, and plastic are often
recycled. Masonry, asphalt, concrete, and reinforcing steel are just a few of
the many building components that may go through recycling procedures.
Quickly collecting and using the residues of "green" plants to make mulch or
9

fertilizer is common practice. Even more so, a number of sectors recover


different waste products and/or clean and "rejuvenate" solvents for potential
reuse (Niederschulte et al.,2016). The solvent extraction of oils, fats, and
plasticizers from filtering materials like activated charcoal and clays is one
example; the extraction of copper and nickel from metal finishing procedures
is another; and the extraction of acid from materials is another example. In
addition, there is a growing trend of recycling food oils for use in "biodiesel"
and other products.

Success stories of recycling and reusing materials pop up all the time. In
certain cases, raw materials go through extensive processing to create
finished goods, with recycled resources serving as an input (Yadav et
al.,2020). Reusing paper to make new paper and aluminum cans to make
new metal items are two examples of recycling. There are instances where
recycled materials are used without going through extensive or substantial
processing.

The use of wood chips made from recycled wood or the incorporation of
bricks and other building materials into newly constructed buildings are two
common examples (Munjar, 2022). Marketplaces that are able to operate
and public acceptance of recycled products and their promotion are crucial
for recycling to be successful. Important considerations also include the
effective sorting and processing of recyclables and the wide range of uses for
recycled materials.

Biological Treatment

Wastes with substantial organic components should not be disposed of in


landfills; this is discouraged in many nations, including the US. Some
European nations have outright banned certain types of disposal methods.
There are various methods of managing waste when landfilling is not a
desirable choice (Lee et al.,2021). One way to manage trash is to process it
such that the biodegradable components break down and the residuals—the
10

portion of inorganic waste that remains—can be disposed of or put to good


use.

Wastes may be biodegraded using mechanical biological treatment (MBT),


aerobic composting, or anaerobic digestion (Lee et al.,2021). Waste can be
broken down using Anaerobic digestion which turns it into something useful
(Lee et al.,2021). The process of aerobic composting involves putting certain
amounts of organic waste into rows, piles, or containers. These may be
placed outside or within enclosed structures that have gas collection and
treatment systems installed. Bulking agents, such wood chips, are added to
the waste material throughout the process to speed up the aerobic
breakdown of organic compounds. Ultimately, the substance is permitted to
solidify and develop via a curing procedure that simultaneously eliminates
microorganisms. Carbon dioxide, water, and the compostable material are
the final products of the composting process.

Incineration

Degradation by-products from waste breakdown may be used as a valuable


source of energy in addition to producing compost and other useful solid end
products. Anaerobic digestion of garbage may produce biogas, which can be
collected and used to create energy, as was previously stated. As an
alternative, garbage may be burned directly to provide energy (Lee et
al.,2021). To create electrical energy, garbage is burned at very high
temperatures in an incinerator. Ash is a result of incineration that has to be
properly characterized before being disposed of or, in some situations,
beneficially repurposed. Because there is a shortage of landfill area, it is
commonly utilized in wealthy nations. An estimated 130 million tons of trash
are burned each year in over 600 facilities spread over 35 nations (Munjar,
2022). Moreover, burning hazardous wastes such oils, solvents, medical
wastes, pesticides, and chlorinated hydrocarbons is a common and efficient
way to reduce their impact.
11

Landfill Disposal

Landfill disposal continues to be the predominant means of disposing of


garbage in the United States, despite advancements in recycling and reuse.
As was already indicated, although the total capacity of landfills is declining,
the pace of MSW creation is still rising (Munjar, 2022). The expenses
associated with disposing of garbage in landfills have increased significantly
as a consequence of new rules pertaining to appropriate waste disposal and
the adoption of cutting-edge liner systems to reduce the possibility of
groundwater pollution from leachate migration and infiltration (Munjar,
2022). Furthermore, there is a growing public hostility to landfills, partly
because to recollections of past careless dumping procedures and the
unfavorable side effects they caused, such as uncontrolled vectors, polluted
groundwater, overpowering aromas, and therefore decreased property
values.

Recommendations and conclusion


Recommendations

INEOS has a very large market share in the UK and most European nations
but it should invest more in environmentally friendly methods of disposing
chemical waste. Sustainable practices should be done not to include only
INEOS and its stakeholders but also the community around it.

The best lace to start is to implement strategies disused above to reduce


waste and if possible, to make sure that the whole production process
doesn’t have any waste. This can be done by recycling the raw materials and
making use of them in other production processes.

Conclusion

INEOS has the capability to become a leading company in sustainable


development with the right strategies. It is up to the management to find
experts that can formulate a sustainable business model suitable for the
company, while maintaining low cost of production.
12

References

Shen, C.W., Tran, P.P. and Minh Ly, P.T., 2018. Chemical waste management
in the US semiconductor industry. Sustainability, 10(5), p.1545.

Horodytska, O., Valdés, F.J. and Fullana, A., 2018. Plastic flexible films waste
management–A state of art review. Waste management, 77, pp.413-425.

Hall, D. and Nguyen, T.A., 2012. Waste management in Europe: Companies,


structure and employment. Public Services International Research Unit
(PSIRU), 33.

Rerat, C., Papadokonstantakis, S. and Hungerbühler, K., 2013. Integrated


waste management in batch chemical industry based on multi-objective
optimization. Journal of the Air & Waste Management Association, 63(3),
pp.349-366.
13

Smith, D. and Blowers, A., 2021. Here today, there tomorrow: the politics of
hazardous waste transport and disposal. In Waste location (pp. 208-226).
Routledge.

Yıldız, T.D., 2020. Waste management costs (WMC) of mining companies in


Turkey: can waste recovery help meeting these costs?. Resources Policy, 68,
p.101706.

Heller, N. and Flamme, S., 2020. Waste management of deconstructed


External Thermal Insulation Composite Systems with expanded polystyrene
in the future. Waste Management & Research, 38(4), pp.400-407.

Esmaeili, A., Khoram, M.R., Gholami, M. and Eslami, H., 2020. Pistachio waste
management using combined composting-vermicomposting technique:
Physico-chemical changes and worm growth analysis. Journal of Cleaner
Production, 242, p.118523.

Geels, F.W., 2022. Conflicts between economic and low-carbon reorientation


processes: insights from a contextual analysis of evolving company
strategies in the United Kingdom petrochemical industry (1970–
2021). Energy Research & Social Science, 91, p.102729.

Snyder, K.L., Hoogkamer, W., Triska, C., Taboga, P., Arellano, C.J. and Kram,
R., 2021. Effects of course design (curves and elevation undulations) on
marathon running performance: a comparison of Breaking 2 in Monza and
the INEOS 1: 59 Challenge in Vienna. Journal of sports sciences, 39(7),
pp.754-759.

Murphy, J.V., 2006. Low-Margin Products, High-Service Demands Drive


Innovene’s Supply Chain Choices. Global Logistics & Supply Chain
Strategies, 10(9).

Munjar, V., 2022. Stabilization and Solidification: A solution to the excessive


pollution released by The INEOS Neville Plant. Spectrum of Emerging
Sciences, 2(1), pp.25-28.
14

Niederschulte, M., Russell, K. and Connors, K., 2016. DOE-INES New Planet
Bioenergy Technical Report Final Public Version 7-22-16 (No. DOE-INEOS-
002883). INEOS New Planet BioEnergy LLC, Vero Beach, FL (United States).

Yadav, K., Mandal, M.K., Pal, S., Chaudhuri, H. and Dubey, K.K., 2020.
Bioeconomy of municipal solid waste (MSW) using gas fermentation.
In Current Developments in Biotechnology and Bioengineering (pp. 289-304).
Elsevier.

Lee, R.P., Tschoepe, M. and Voss, R., 2021. Perception of chemical recycling
and its role in the transition towards a circular carbon economy: A case study
in Germany. Waste Management, 125, pp.280-292.

You might also like